Live cattle contracts and feeder cattle contracts are starting to rebound from Wednesday ‘s hasty setback, but lean hog contracts aren’t jumping on the band wagon just yet.
Feeder cattle contracts led the complex lower Wednesday and now are rallying and motivating live cattle contracts to do the same — lean hog contracts, as of noon, aren’t too sure about rebounding though.
December corn is up 3/4 cent per bushel and December soybean meal is down $2.20. The Dow Jones Industrial Average is down 73.07 points and NASDAQ is down 30.79 points.
Live cattle contracts are the most unsure of where to land Thursday morning. Feeder cattle contracts shoot higher, lean hog contracts keep their bearish whistle of lower and live cattle contracts are across the board. Higher, and then lower, then to evenly mixed live cattle contracts jump around. December live cattle are up $0.35 at $118.45, February live cattle are up $0.22 at $124.32 and April live cattle are up $0.02 at $125.70.
Cash cattle have yet to really trade and set the week’s tone, though there have been dressed cattle sold in eastern Nebraska for $182 with delayed delivery until 12/02/19. Bids of $115 are surfacing in Nebraska and Colorado.
If feeders feel as if the downward pressure is here to stay and that the board is going to continue to erode into next week and potentially beyond — cash cattle trade could get underway this afternoon. If feeders feel as if they still hold enough leverage and can push trade until sometime Friday, they may let packers sit on their bids another day and let the board stabilize.
Midday boxed beef prices are lower: choice down $0.13 ($242.21) and select down $1.67 ($215.86) with a movement of 52 loads (31.34 loads of choice, 10.73 loads of select, 4.91 loads of trim and 5.04 loads of ground beef).
Feeder cattle contracts have taken it upon themselves in the last couple of days to shake things up. First feeder cattle markets led the entire livestock complex lower on Wednesday, and now the feeder cattle contracts are all rallying in both nearby and deferred months. November feeder cattle are up $1.02 at $146.60, January feeder cattle are up $1.12 at $143.95 and March feeders are up $0.55 at $143.82.
News circulates Thursday morning that new cases of African swine fever have set into some Eastern European countries. The World Organization for Animal Health announced that a new case has been reported in Moldova. The headline did mention that the disease has been present in parts of Hungary and Romania since at least 2018.
Unlike the rest of the livestock complex, lean hog futures aren’t ready to bounce back and rally just yet. December lean hogs are down $0.12 at $63.00, February lean hogs are down $1.07 at $73.47 and April lean hogs are down $1.35 at $80.40. It wouldn’t be unlikely to see the lean hog complex keep this steady to slightly downward trade throughout the rest of the day. The projected lean hog index for 11/12/19 is up $0.61 at $59.55, and the actual index for 11/11/19 came in down $0.50 at $58.94.
Prices on the National Direct Hog Report are up $0.29 with a weighted average of $42.53, ranging from $40.00 to $44.99 on 5,814 head sold and a five-day average of $43.12. Pork cutouts totaled 180.02 loads with 164.08 loads of pork cuts and 15.94 loads of trim. Pork cutout values are down $0.66 at $86.36.